LANSING, November 20.   The Michigan Public Service Commission today took
action to further advance natural gas customer choice in Michigan, adopting a 
second Staff report, with modification, which establishes acceptable uniform terms 
and conditions for voluntary natural gas customer choice programs for Michigan's 
mid-sized local distribution companies (LDCs).  The Staff report recommended that 
several changes be made to the choice program features that are being utilized by 
large Michigan LDCs (Consumers Energy Company and Michigan Consolidated Gas 
Company) in order to accommodate the operational differences of mid-sized LDCs.   
The Commission approved a modification to the Staff report to allow Michigan Gas 
Utilities to use a different annual reconciliation process than currently used by 
one of the major natural gas local distribution companies in Michigan.  The 
Commission found that one way to determine if changes are needed in Michigan's 
pilot programs is to include various methodologies or options and to review the 
result of these pilot programs.   The Commission also encouraged SEMCO Energy 
Company and Michigan Gas Utilities to voluntarily file natural gas customer choice 
programs, consistent with the terms and conditions featured in the Staff report.

	Today's action follows a Commission order issued August 4, 2000, in which 
the Commission directed Staff to undertake a collaborative process with the local 
distribution companies that were conducting gas customer choice pilots and other 
interested parties to develop uniform terms and conditions for use in the expanded 
program.  Following collaborative meetings, the Staff issued a report, reflecting a 
consensus that smaller LDC's should be distinguished from larger LDC's.    Several
parties submitted comments, after which a meeting was held with representatives 
from ANR Pipeline Company, Attorney General Jennifer M. Granholm, Consumers Energy 
Company, CMS Marketing, Services and Trading Company, FirstEnergy Services, Inc., 
the Michigan Electric and Gas Association, MGU, the National Energy Marketers 
Association, Nicor Energy, Inc., Northern Natural Gas Company, SEMCO, and Wisconsin 
Public Service Corporation.  On September 27, 2001, the second Staff report and 
recommendations was submitted to the Commission.


The MPSC is an agency within the Department of Consumer and Industry Services.

Case No. U-12550 
November 20, 2001
(MPSC adopts Staff report establishing uniform terms and conditions for voluntary 
choice program for Michigan's mid-sized LDC's)